Tuesday, 19 October 2010

A New Level of Luxury? 19/10/10

Like we keep saying, the luxury industry is experiencing solid recovery in light of recent economic turmoil. With the constant and voracious appetite consumers are showing for certain luxury brands, many brands are answering demand with supply, as well as simultaneously adopting a push strategy into new and emerging markets. Luxury brands sales have increased dramatically in China this year, up to 30 per cent so far. The US, still recovering from the GFC saw its luxury industry grow 12 per cent. Shares in the biggest luxury goods companies, think LVMH and Richemont, have risen sharply this year.

It’s a dilemma the luxury industry has always faced: you want to be popular, but you want to be exclusive and sought after. How do you maximise sales without loosing your cachet? We believe an opportunity exists for a select few ‘ultra-luxe’ brands that currently operate in the most exclusive of niches. These brands are bespoke and artisanal in their entire approach to business, and may prove to appeal to tastes a tier higher than the broader luxury market. There is perhaps soon to be a new ‘ultra-luxe’ consumer group that will be seeking something rarer than other brands can give. This will be a golden age for the Goyard’s and Delvaux’s of the world.

Image credit: images.businessweek.com

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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au